$12.68 Million Paid To Three Supervalu CEOs In Fiscal ’12

When Cerberus completed the deal to acquire a controlling 30 percent stake in Supervalu, it also officially bought five former Supervalu operating divisions (877 stores) under a separate agreement. Shortly after the two-part deal was finalized, Supervalu riffed 1,100 employees. This followed several previous years of staff reductions (under the reigns of Herkert and his predecessor Jeff Noddle). Then last month, new CEO Duncan reinstated the company’s bonus plan (which Herkert axed), but only a certain segment of associates are eligible. That “selective” process clearly irked some veteran employees who didn’t qualify for the newlbonus program, noting that Duncan failed to mention if or when wage increases and the reinstatement of the company’s “matching” 401(k) program would be addressed.

And then there’s the overriding issue of increasing sales. While it’s still early in the tenure of Duncan and his revamped team, there’s been little indication thus far that Supervalu’s initial moves have yielded significant sales gains.

And what might happen if, despite improved leadership and focus, Supervalu’s performance continues to languish? What if the operating banners don’t receive adequate capital investment to better compete in the overstored markets in which its corporately-owned stores are located? Exactly how will Supervalu reverse the negative momentum of declining market shares among all its regional supermarket chains? How will its Save-A-Lot unit more effectively compete with Aldi and (to a lesser degree) PriceRite? And will its independent retail (wholesale) division add new independent retailers to its base or even maintain its current roster of independents, some of whom have been unhappy with the company long before Duncan took the helm?

Duncan has addressed some of these issues in the past three months – now the proof will be in the action and execution.